The La Liga giants were criticised for not attending last October's ceremony as they felt Vinicius Jr should have won the prestigious award instead of Manchester City midfielder Rodri but the coach has no regrets about the club's stance.
Speaking ahead of Real's Champions League play-off game against City on Tuesday (11.02.25), Ancelotti - who was unable to collect his coach of the year prize in person - said: "I don't think it was the wrong decision.
"We thought Vini was the winner of the Ballon d'Or. It doesn't mean we don't respect Rodri because he is a fantastic player. I think Rodri deserved to win it the year before."
City manager Pep Guardiola attempted to defuse the matter by stating that there was no resentment at the Etihad Stadium over Real's boycott.
The Spaniard said: "I was happy for Rodri but Vinicius made an extraordinary year as well.
"He could deserve it, like in the past when [Lionel] Messi and Cristiano [Ronaldo] were fighting for it. So, the subject is over."
City and Real will go head-to-head for the fourth season in a row in Europe's elite competition and Ancelotti is expecting a challenging night for his side despite the Premier League club's travails this term.
He said: "It seems like it's a Clasico because we have played each other a lot of times in this competition.
"I still think they are one of the best teams in Europe and have one of the best managers out there. He has always tried to play well and has brought a great deal to football in terms of attacking play.
"He is an innovator and I continue to believe in him. It's a nightmare preparing for games against him because he always has ideas that make you think."